United Bancorp(UBCP) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2024, was $1,820 thousand, down 24% from $2,392 thousand in the same period last year[11]. - Net income for the nine months ended September 30, 2024, was $5,553,000, compared to $6,560,000 for the same period in 2023, representing a decrease of approximately 15.3%[15]. - Earnings per common share for the three months ended September 30, 2024, was $0.31, down from $0.42 in the same period of 2023, a decrease of 26.2%[11]. - For the nine months ended September 30, 2024, net income was $5,301,000, with basic and diluted earnings per share of $0.95, compared to $6,296,000 and $1.15 for the same period in 2023[47]. - Comprehensive income for the three months ended September 30, 2024, was $5,881 thousand, compared to a loss of $4,906 thousand in the same period last year[12]. Asset and Liability Management - Total assets increased to $825,482 thousand as of September 30, 2024, compared to $819,449 thousand at December 31, 2023, reflecting a growth of 0.4%[8]. - The total liabilities increased to $760,022 thousand as of September 30, 2024, from $755,856 thousand at December 31, 2023, an increase of 0.2%[8]. - The total stockholders' equity as of September 30, 2024, was $65,460,000, an increase from $52,590,000 as of September 30, 2023, representing a growth of approximately 24.4%[13]. - The carrying amount of cash and cash equivalents was $37,778,000 as of September 30, 2024, compared to $40,770,000 at December 31, 2023[121]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2024, was $6,139 thousand, a decrease of 6.5% from $6,566 thousand for the same period in 2023[11]. - Total interest income generated for the first nine months of 2024 increased by $2.3 million, or 8.5%, but was offset by a total interest expense increase of $3.2 million, or 40.7%[125]. - Noninterest income increased to $1,215 thousand for the three months ended September 30, 2024, compared to $963 thousand for the same period in 2023, representing a growth of 26.2%[11]. - Noninterest expense rose by $275,000 or 1.7% year-over-year, with a significant portion attributed to inflationary pressures[152]. Credit Quality and Loan Performance - The provision for credit loss expense was $69 thousand for the three months ended September 30, 2024, compared to a reversal of $154 thousand in the same period last year[11]. - The total allowance for credit losses (ACL) is established based on expected credit losses measured over the contractual life of a loan, considering historical loss experience and current economic conditions[33]. - The company reported a total of $374,172,000 in commercial real estate loans, a decrease from $374,172,000 in 2023, reflecting a stable portfolio[66]. - The total nonperforming loans reached $790,000, which includes $323,000 in nonaccrual loans with no allowance for credit losses and $57,000 in nonaccrual loans with an allowance for credit losses[80]. Dividend and Shareholder Returns - Dividends per common share increased to $0.1775 for the three months ended September 30, 2024, compared to $0.1675 for the same period in 2023[11]. - Total cash dividends paid on common stock for the nine months ended September 30, 2024, were $4,040,000, compared to $3,786,000 for the same period in 2023, an increase of about 6.7%[15]. - A regular cash dividend increased by $0.03 to $0.5250, and a special cash dividend of $0.15 was paid, resulting in a total payout of $0.6750, a 6.0% increase for the quarter[129]. Economic and Market Conditions - The company faced challenges due to net interest margin compression and sluggish economic activity, impacting loan demand and growth[123]. - Economic activity remained little changed across Federal Reserve Districts, with most reporting declining manufacturing activity and steady banking sector performance[170]. - Inflation moderated during Q3 2024, but prices for certain food staples increased sharply, impacting consumer spending power[171]. Future Outlook and Strategic Initiatives - The company aims to grow total assets to $1.0 billion or greater, with a new banking center under construction in Wheeling, West Virginia, expected to open in Q3 2025[128]. - The company anticipates overcoming current challenges and achieving higher growth and improved performance in the next 12 to 24 months[123].